The key European regulation organisation, ESMA, has recently been looking into the issue of closet trackers or index huggers (I prefer the term quasi-tracker, or quackers for short). The implication is that some asset managers are charging active fees for what are in essence tracker funds. 

Our focus is on funds that meet investor outcomes, funds that assess risk versus a volatile benchmark don’t really meet these needs. As a result, Square Mile would rarely look at a quacker type fund, much less recommend one. However, I would not be surprised if some funds run by certain groups end up been accused of being closet trackers. Frankly, we haven’t investigated the issue and we focus our efforts on identifying good funds, not bad ones.